Hedge fund urges Cypress to reorg, go private

SAN FRANCISCO  A Los Angeles-based hedge fund has written a letter to the board of directors of Cypress Semiconductor Corp. urging the company to reorganize itself and become a private company through leveraged buyout.

In a letter dated Thursday (Dec. 28), Robert Chapman, managing member of Chapman Capital LLC, recommends that Cypress's board re-engage Credit Suisse to effect a corporate reorganization that separates Cypress from its controlling stake in solar cell manufacturer Sun Power Corp.

Cypress (San Jose, Calif.), founded by T.J. Rodgers 25 years ago, "deserves a much higher valuation than what it was ascribed the day Mr. Rodgers took it public two decades ago," the letter states.

Chapman Capital said it own 1.5 million common shares, or just over 1 percent of Cypress. According to the letter, Cypress's board of directors owns "virtually no common stock" in the company.